As it sits, $1000/mo on 40K is nice fat 30% cash/cash ($12,000/$40,000), but it's only a 3% cap rate ($12,000/$400,000).

Excuse my fat finger miss spelling.

After all, my personal house had nearly doubled in value since purchasing it a year prior and I was feeling pretty fat about my new-found wealth.

LOL My statement was assuming that you had placed a fat down payment.Please don't take my posts offensively as I do respect the vast experience you share with the community, and do not intend to offend when I share my opinion.

Go buy a dozen of those cheap little blank yard signs (the ones with the wire H frame work fine), a big fat tipped sharpie, and a lock box.

In addition to what you see in this thread, I'd recommend adding a fat safety cushion to your budget for all unplanned expenses. 

That might be a fat chance answer but it's what you could use if he'll give it to you. 

You need a way to frame this so it's good for both parties.Remember: Pigs get fat; hogs get slaughtered.

The FAT lady has sung. 

This indicates to me that there is a lot of fat that can trim, and while you can invest with no money down (read: other people's money), having a bit of your own makes life immeasurably easier.